8/3/2023

speaker
Conference Call Moderator
Moderator

Good morning, everyone, and thank you for participating in today's conference call to discuss Climb Global Solutions financial results for the second quarter ended June 30th, 2023. Joining us today are Climb's CEO, Mr. Dale Foster, the company's CFO, Mr. Drew Clark, and the company's investor relations advisor, Mr. Sean Mansouri with Elevate IR. By now, everyone should have access to the second quarter 2023 earnings press release, which was issued yesterday afternoon at approximately 4.05 p.m. Eastern Time. The release is available in the investor relations section of Climb Global Solutions website at www.climbglobalsolutions.com. This call will also be available for webcast replay on the company's website. Following Ranish's remarks, we'll open the call for your questions. I'd now like to turn the call over to Mr. Mansouri for introductory comments.

speaker
Sean Mansouri
Investor Relations Advisor

Thank you, Carmen. Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements. which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statement. Our presentation also includes certain non-GAAP financial measures, including adjusted gross billings, adjusted EBITDA, adjusted net income and EPS, and effective margin as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the Urgence Press Release and Form 8K we furnished to the SEC yesterday. I'll now turn the call over to Climb's CEO, Dale Foster.

speaker
Dale Foster
CEO

Thank you, Sean. Good morning, everyone. During the quarter, we continue to execute on our core initiatives to generate growth within our existing vendor base. while adding new innovative vendors to our line card. This led to another period of double digit growth to the top line in our ninth consecutive quarter of profitability improvement. In addition, throughout the quarter, we made strategic investments in our operating systems, new personnel, sales territory expansion, and training and development programs to reinforce our foundation. With a clean and efficient infrastructure and continuous focus on strengthening our line card, we are well positioned to continue our plans for growth and profitability as we scale our global footprint. We are committed to a focused line card, which enables us to partner with the most strategic and cutting edge technology vendors in the market. Out of the 38 brands we evaluated through the second quarter, we signed agreements with only four of them. Quickly touching on a few of our latest wins. First, we partnered with Jamf, a publicly traded company that provides end-to-end systems management and security solutions for an Apple first environment that is enterprise secure, consumer simple, and protects personal privacy. Next, we finalized our agreement with Offensive Security, a leading provider of professional workforce development training and support cybersecurity. Offensive Security will be a viable cross-sell within our security offerings, which is one of our fastest growing segments of our business. And finally, we signed GitLab to our line card, the most comprehensive AI-powered DevSecOps platform in the world. We look forward to building a prosperous relationship with each of these vendors as we take their products to market. In addition to our vendor wins, in April, we entered into a strategic partnership with another distributor called Radius. This unique partnership enabled us to leverage the Radius line card for direct sales in other markets while providing them with an infrastructure to transact. In particular, excuse me, Radius has a strong vendor relationship with Tanium, a cybersecurity and systems management company which has been a consistent winner in the market with a commitment to selling through the distribution channel. Drew will expand on the mechanics of this partnership later in the call. In late May, we announced our inclusion into the Russell 3000 Index, which became effective on June 26th. This achievement is a testament to the dedication and consistent execution of our entire global employee network, as well as our outstanding customers and vendors. We celebrate this milestone by ringing in the new NASDAQ closing bell in Manhattan a few weeks ago. I couldn't be prouder of the team we've built and look forward to achieving even greater success in the years ahead. As we enter the back half of the year, we have a solid foundation in place to continue driving organic growth with existing vendors while adding new, innovative vendors to our line card. We will also continue to evaluate M&A opportunities that can enhance our service and solutions as well as our geographic footprint. These initiatives, coupled with a robust balance sheet, will enable us to execute organic and inorganic growth and profitability objectives in 2023. With that, I will turn the call over to our CFO, Drew Clark, to take you through the financial results. Drew?

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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